This will be the second cutdown of prices in this month. The petrol prices were reduced by Rs 2.22 per litre on Nov 16.
R P N Singh, Minister of state for petroleum and natural gas claimed that Petrol prices in India are costlier than in US because of high taxes.
The petrol in Delhi costs Rs 66.42 per litre as compared to US, where it costs Rs 44.88 per litre.
"The reduction in oil price warrants a cut of Rs 0.85 per litre in the petrol price, excluding all taxes," said an official. He added that if we consider the retail price, then the tax would go down by Rs 1.02 per litre.